Juniper has fallen victim to a drop off in demand for telecomm
equipment. With the conversion from voice to data transmission
still in its infancy, Juniper Networks (NASDAQ:JNPR) certainly
has room to grow in the future. However, it has become a matter
of whether or not it will be in a position to do so, given the
drubbing that it has taken over the last year. In addition, JNPR
is being squeezed by increased competition from Cisco
(NASDAQ:CSCO) and Ciena (NASDAQ:CIEN).

Right now, investors are fleeing the stock for fear of a
prolonged downturn. While JNPR is a well-run business that is
not highly leveraged, a company can only cut costs for so long
before the lack of demand for their product eats into reserves.
When this starts happening, it is harder to ramp back up to high-
growth status. And in the highly competitive optical networking
space in which JNPR operates, the slower company will loose,
period.

One look at JNPR's chart and it is easy to see why I would
recommend steering clear of this networking giant until there is
concrete evidence of a turnaround in their business. The stock
could easily languish around current levels for years, so you
have to consider the opportunity cost of holding such a stock
before getting into it (even for a long-term play).